Mar 31, 2016
Report on the Financial Statements
We have audited the accompanying financial statements of AMRIT CORP. LIMITED ("the Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure ''A'' statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Companies Act, 2013, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. on the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure ''B'' ; and
g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 29 to the financial statements;
ii. the Company has made necessary provision in its financial statements under the applicable law or accounting standards, wherever required;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure "A" to Independent Auditorsâ Report
Referred to in Paragraph 1 under the heading of "report on other legal and regulatory requirements" of our report of even date
1. (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The company has a phased programme of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. In accordance with such programme, the management has physically verified its fixed assets during the year and no material discrepancies were noticed by them.
(c) The title deeds of immovable properties are held in the name of the company.
2. According to the information and explanations given to us, physical verification of inventories is conducted by the management at periodic intervals. The procedures followed by the company for physical verification of inventories are reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification as compared to book records.
3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. Consequently sub-clauses 3 (a), (b) & (c) of this clause are not applicable.
4. The Company has not made any transaction in respect of loans covered under section 185 of the Companies Act, 2013 and in respect of loans, investments, guarantees and security covered under section 186 of the Companies Act, 2013, the provisions of the said section 186 have been duly complied.
5. The Company has not accepted any deposits from the public and consequently, the directives issued by Reserve Bank of India, the provisions of sections 73 to 76 of the Companies Act, 2013 and rules framed there under are not applicable.
6. In accordance with the information given by the management the maintenance of cost records has not been prescribed by the Central Government under section 148 (1) of the Companies Act, 2013.
7. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the company is regular in depositing the undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues as applicable with the appropriate authorities. According to the information and explanations given to us, there was no undisputed amounts payable in respect of the above dues which were outstanding as at 31st March, 2016 for a period of more than six months from the date of their becoming payable.
(b) According to the information and explanations given to us, the amounts payable in respect of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues which have not been deposited on account of any disputes, are as under:
Name of the statutes |
Nature of dues |
Amount (Rs.) |
Forum where dispute is pending |
Income Tax Act, 1961 |
Withdrawal of investment Allowance and other disallowances |
Rs. 2,48,60,926/- |
High Court Allahabad & other Appellate Authorities |
8. The company has not any defaulted during the year, in repayment of any loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
9. According to the information and explanations given to us, during the year the Company has raised term loans. The aforesaid term loans were applied for the purposes for which they are raised.
10. According to the information and explanations given to us, no fraud by the company or no fraud by the Company''s officers or employees has been noticed or reported during the year.
11. The company has paid managerial remuneration as per provisions of section 197 read with Schedule V to the Companies Act, 2013.
12. The company is not the Nidhi Company and hence clause 3 (xii) is not applicable.
13. The transactions with the related parties made by the Company are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements , as required by the applicable accounting standards.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence clause 3 (xv) is not applicable.
15. During the year, the company has not entered into any non-cash transactions with directors or persons connected with him and hence clause 3 (xiv) is not applicable.
16. The company is not required to register under section 45-IA of the Reserve Bank of India Act, 1934.
For V SAHAI TRIPATHI & CO
Chartered Accountants
Firms Registration No.000262N
(Adarsh Agrawal)
Place : Noida Partner
Date : 28th April, 2016 Membership No. 092249
Mar 31, 2015
We have audited the accompanying financial statements of AMRIT CORP.
LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances
but not for the purpose of expressing an opinion on the effectiveness
of the entity''s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by the Management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. In our opinion and to the best of our information and according to
the explanations given to us, the Companies (Auditor''s Report) Order,
2015 issued by the Central Government of India in terms of section 143
(11) of the Act as give in the annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e. on the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
f. with respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 29 to the
financial statements;
ii. the Company has made necessary provision in its financial
statements under the applicable law or accounting standards, wherever
required;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to Independent Auditors'' Report
Referred to in Paragraph 1 under the heading of "report on other
legal and regulatory requirements" of our report of even date
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. In accordance with
such programme, the management has physically verified its fixed assets
during the year and no material discrepancies were noticed by them and
the same have been properly dealt with in the books of account.
2. (a) According to the information and explanations given to us,
physical verification of inventories are conducted by the management at
periodic intervals.
(b) The procedures followed by the company for physical verification of
inventories are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification as
compared to book records.
3. (a) The Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act, 2013.
Consequently, sub-clauses 3(b) & (c) are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventories and fixed assets and for the
sale of goods and services. We have not observed any continuing failure
to correct major weaknesses in internal controls during the course of
our audit.
5. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of Sections 73 to 76 or any
other relevant provisions of the Companies Act, 2013 and the rules
framed there under, wherever applicable with regard to deposits during
the year. In accordance with the information and explanations given to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
tribunal, which has not been complied with. In terms of provisions of
Section 73 of the Companies Act, 2013, the Company has discontinued the
Public Deposit Scheme and repaid all outstanding deposits amounting to
Rs.202.02 lacs together with accrued interest thereon before 31st
March, 2015.
6. In accordance with the information given by the management the
maintenance of cost records has not been prescribed by the Central
Government under section 148 (1) of the Companies Act, 2013.
7. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the company is
regular in depositing the undisputed statutory dues including provident
fund, employees'' state insurance, income tax, sales tax, duty of
customs, duty of excise, value added tax, cess and any other
statutory dues as applicable with the appropriate authorities.
According to the information and explanations given to us, there was no
undisputed amounts payable in respect of the above dues which were
outstanding as at 31st March, 2015 for a period of more than six months
from the date of their becoming payable.
(b) According to the information and explanations given to us, the
particulars of the dues outstanding of income tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax, cess and any
other statutory dues which have not been deposited on account of any
disputes, are as under:
Name Nature of dues Amount (Rs.) Forum where
of the dispute is
statutes pending
Income Withdrawal of Rs. 2,48,60,926/- High Court
Tax investment Allahabad
Act, 1961 Allowance & other
and other Appellate
disallowances Authorities
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
8. The company has no accumulated losses as at 31st March, 2015 and
has not incurred any cash losses during the financial year ended 31st
March, 2015 and in the immediately preceding financial year also the
company has not incurred the cash losses.
9. As per information and explanation given to us, the company has
not, during the year, defaulted in the re-payment of dues to financial
institution or bank or debenture holders.
10. According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions during the year.
11. According to the information and explanations given to us, the
term loan has been obtained by the company. The term loans raised
during the year have been applied for the purposes for which they were
raised.
12. During the course of our examination of the books and records of
the company and according to the information & explanations given to
us, there were no frauds on or by the company, noticed or reported
during the course of our audit for the year ended 31st March, 2015.
For V SAHAI TRIPATHI & CO
Chartered Accountants
Firms Registration No.000262N
(Adarsh Agrawal)
Place : Noida Partner
Date : 13th May, 2015 Membership No. 092249
Mar 31, 2014
We have audited the accompanying financial statements of AMRIT CORP.
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003("the
Order") issued by the Government of India in terms of sub-section (4A)
of section 227 of the Act, we give in the Annexure to the Independent
audit report.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General
Circular15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of section 164(2) of the
Companies Act, 2013 (corresponding to Section 274(1)(g) of the Act).
Annexure to Independent Auditors'' Report Referred to in Paragraph 1
under the heading of "report on other legal and regulatory
requirements" of our report of even date
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. In accordance with
such programme, the management has physically verified its fixed assets
during the year and no material discrepancies were noticed by them.
(c) During the year, there was no substantial disposal of fixed assets.
2. (a) According to the information and explanations given to us,
physical verification of inventories is conducted by the management at
periodic intervals. These intervals are reasonable having regard to the
size of the company and the nature of its inventories.
(b) The procedures followed by the company for physical verification of
inventories are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification as
compared to book records.
3. (a) The Company has granted unsecured loans amounting to Rs.
3,92,50,000/-to two (2) companies covered in the register maintained
under Section 301 of the Companies Act, 1956. The maximum amount
involved during the year in respect of aforesaid two parties is
Rs.3,92,50,000/- and the year-end balance of the said two loan amount
is Rs.15,00,000/-.
(b) The rate of interest and other terms & conditions of the unsecured
loan given by the Company are not prima-facie prejudicial to the
interest of the company;
(c) The unsecured loans are regularly serviced as per agreed terms;
(d) There is no overdue amount in respect of the said unsecured loans;
(e) The Company has not taken any loan from the companies covered in
the register maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. There was no continuing failure to correct
major weaknesses in internal controls noticed by us during the course
of our audit.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. five lacs in respect of any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the Rules framed there-under,
wherever applicable with regard to the deposits accepted during the
year. In accordance with the information and explanations given to us,
there were no orders passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
"Tribunal" which have not been complied with.
7. In our opinion the company has an internal audit system which is
commensurate with the size and nature of its business.
8. Under the Companies (Cost Accounting) Rules, 2011, the company is
required to maintain cost records w.e.f. 1st April, 2011 in respect of
milk processing. We have broadly reviewed the books of accounts
maintained by the Company, pursuant to the rules prescribed by the
Central government for the maintenance of cost records under Section
209(1)(d) of the Companies Act,1956 read with Companies (Cost
Accounting) Rules, 2011 and are of the opinion that prima facie the
prescribed accounts and records have been maintained . We have not
however made a detailed examination of such accounts and records.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, in our opinion
the company is regular in depositing the undisputed statutory dues
including provident fund, investor education & protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and any other material statutory
dues as applicable with the appropriate authorities. According to the
information and explanations given to us, there were no undisputed
amounts payable in respect of the above dues which were outstanding as
at 31st March, 2014 for a period of more than six months from the date
of becoming payable.
(b) According to the records of the company examined by us, the
particulars of the dues outstanding of income tax, sale tax, wealth
tax, service tax, custom duty, excise duty and cess as at 31st March,
2014 which have not been deposited on account of disputes, are as
under:
Name Nature of dues Amount (Rs.) Forum where
of the dispute is
statutes pending
Income Withdrawal of Rs. 2,35,71,688/- High Court
Tax investment Allahabad
Act, 196 Allowance
and other
disallowances
10. The company has no accumulated losses as at 31st March, 2014 and
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. The company has not during the year defaulted in the re-payment of
dues to the bank. The company has no loans from financial institutions
nor has it issued any debentures.
12. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, the provisions of clause 4(xiii) of the Order are
not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments.
15. In our opinion, and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year. There is
no corporate guarantee which is outstanding at the end of the year.
Accordingly, clause 4(xv) of the order is not applicable.
16. The company has not obtained term loan from bank during the year
ending 31st March, 2014.
17. According to the information and explanation given to us, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment.
18. During the year, the company has not made any preferential
allotment of share to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
clause 4(xviii) of the order is not applicable.
19. The company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The company has not raised any money by way of public issue during
the year. Accordingly, clause 4(xx) of the order is not applicable.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor we
have been informed of such case by the management.
For V SAHAI TRIPATHI &CO
Chartered Accountants
Firms Registration No.000262N
(Adarsh Agrawal)
Place : Noida Partner
Date : 27th May, 2014 Membership No. 092249
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of AMRIT CORP.
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March , 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about wheth- er the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies usedandthereasonablenessoftheaccountingestimates
made by the Management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Annexure to Independent Auditors'' Report
(Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date)
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The company has a phased programme of physical verification of its
fixed assets which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. In accordance with such programme, the
management has physically verified its fixed assets during the year and
no material discrepancies were noticed by them.
(c) During the year, there was no substantial disposal of fixed assets.
2. (a) Accordingtothe information and explanations given to us,
physical verification of inventories is conducted by the management at
periodic intervals. These intervals are reasonable having regard to the
size of the company and the nature of its inventories.
(b) The procedures followed by the company for physical verification of
inventories are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification as
compared to book records.
3. (a) The company has granted unsecured loans amounting to Rs.
4,12,50,000/- to two (2) companies covered in the register maintained
under Section 301 of the Companies Act, 1956. The maximum amount
involved during the year in respect of aforesaid two parties is Rs.
4,12,50,000/- and the year-end balance of the said two loan amount is
Rs. 3,92,50,000/-.
(b) The rate of interest and other terms & conditions of the unsecured
loan given by the Company are not prima-facie prejudicial to the
interest of the company;
(c) The unsecured loans are regularly serviced as per agreed terms;
(d) There is no overdue amount in respect of the said unsecured loans;
(e) The company has not taken any loan from the companies covered in
the register maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. There was no continuing failure to correct
major weaknesses in internal controls noticed by us during the course
of our audit.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. five lacs in respect of any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the Rules framed there-under,
wherever applicable with regard to the deposits accepted during the
year. In accordance with the information and explanations given to us,
there were no orders passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
"Tribunal" which have not been complied with.
7 In our opinion the company has an internal audit system which is
commensurate with the size and nature of its business.
8. Under the Companies (Cost Accounting) Rules, 2011, the company is
required to maintain cost records w.e.f. 1st April, 2011 in respect of
milk processing. We have broadly reviewed the books of accounts
maintained by the Company pursuant to the rules prescribed by the
Central government for the maintenance of cost records under Section
209(1 )(d) of the Companies Act, 1956 read with Companies (Cost
Accounting) Rules, 2011 and are of the opinion that prima facie the
prescribed accounts and records have been maintained . We have not
however made a detailed examination of such accounts and records.
9. (a) According to the information and
explanations given to us and on the basis of our examination of the
books of account, in our opinion the company is regular in depositing
the undisputed statutory dues including
providentfund.investoreducation&protection fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and any other material statutory dues as applicable
with the appropriate authorities. According to the information and
explanations given to us, there were no undisputed amounts payable in
respect of the above dues which were outstanding as at 31st March, 2013
for a period of more than six months from the date of becoming payable.
10. The company has no accumulated losses as at 31st March, 2013 and
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. The company has not during the year defaulted in the re-payment of
dues to the bank. The company has no loans from financial institutions
nor has it issued any debentures.
12. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, the provisions of clause 4(xiii) of the Order are
not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments.
15. In our opinion, and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year. There is
no corporate guarantee which is outstanding at the end of the year.
Accordingly clause 4(xv) of the order is not applicable.
16. The company has not obtained term loan from bank during the year
ending 31st March, 2013.
17. According to the information and explanation given to us, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment.
18. During the year, the company has not made any preferential
allotment of share to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
clause 4(xviii) of the order is not applicable.
The company has not issued any debentures. Accordingly, clause 4(xix)
of the order is not applicable.
20. The company has not raised any money by way of public issue during
the year. Accordingly, clause 4(xx) of the order is not applicable.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor we
have been informed of such case by the management.
for & on behalf of
V. SahaiTripathi & Co.
Chartered Accountants
Firms Registration No.000262N
(ADARSH AGRAWAL)
Place: Noida Partner
Date: 21st May, 2013 Membership No. 092249
Mar 31, 2012
1. We have audited the attached Balance Sheet of Amrit Corp. Limited
as at 31st March, 2012, Statement of Profit and Loss Account and also
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the management of
the company. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, issued
by the Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956 and on the basis of such checks as we
considered appropriate and according to the information and explanation
given to us, we set out in the Annexure, a statement on the matters
specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Statement of Profit and Loss Account and the
Cash Flow Statement dealt with by this report are in agreement with the
books of account;
iv) In our opinion, the Balance Sheet and Statement of Profit & Loss
Account dealt with by this Report have been prepared in compliance with
the applicable accounting standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956, to the extent applicable;
v) On the basis of information and explanations given to us and
representations received from all the Directors of the Company and
taken on record by the Board of Directors, we report that there is no
Director of the Company who, as at 31st March, 2012, is disqualified
u/s 274 (1) (g) of the Companies Act, 1956, from being appointed as
Director; and
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Statement of
Profit and Loss Account, read together with the significant accounting
policies along with the notes to accounts forming part of financials,
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2012;
b) In the case of Statement of Profit and Loss Account, of the Profit
for the year ending March 31st 2012;
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
(Referred to in paragraph (3) of our Report of even date)
Annexure referred to in paragraph (3) of Auditors' Report to the
members of Amrit Corp. Limited on the financial statements for the year
ended March 31, 2012
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. In accordance with
such programme, the management has physically verified its fixed assets
during the year and no material discrepancies were noticed by them.
(c) During the year, there was no substantial disposal of fixed assets.
However, the company sold the Trademark 'Gagan' used in hydrogenated
vegetable oils and edible refined oils to Bunge India Pvt. Ltd.
('Bunge') for a lump sum consideration of Rs. 10,450 lacs. The Trademark
'Gagan' was licensed to Amrit Banaspati Company Ltd. ('ABCL') and
since, ABCL decided to exit the Edible Oils Business and sold the same
on slump sale basis and as a going concern to Bunge, the said Trademark
'Gagan', being an integral part of Edible Oils Business of ABCL, was
also purchased by Bunge.
2. (a) According to the information and explanations given to us,
physical verification of inventories is conducted by the management at
periodic intervals. These intervals are reasonable having regard to the
size of the company and the nature of its inventories.
(b) The procedures followed by the company for physical verification of
inventories are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification as
compared to book records.
3. (a) The company has granted unsecured loans amounting to Rs. 424.50
lacs to two (2) companies covered in the register maintained under
Section 301 of the Companies Act, 1956. The maximum amount involved
during the year in respect of aforesaid two parlies is Rs. 424.50 lacs
and the year-end balance of the said two loan amounts is Rs. 399.50 lacs.
(b) The rate of interest and other terms & conditions of the unsecured
loan given by the company are not prima-facie prejudicial to the
interest of the company;
(c) The unsecured loans are regularly serviced as per agreed terms;
(d) There is no overdue amount in respect of the said unsecured loans;
(e) An unsecured loan of Rs. 392.73 lacs was granted to the erstwhile
Amrit Banaspati Company Ltd. (ABCL) by the then Amrit Enterprises Ltd.
(now known as 'Amrit Banaspati Co.Ltd.'), a company covered under the
register maintained u/s 301 of the Act under the Modified
Rehabilitation Scheme (MRS) of ABCL sanctioned by the Hon'ble Board of
Industrial & Financial Reconstruction (BIFR). Out of the said unsecured
loan, a sum of Rs. 88.53 lacs has devolved on the company pursuant to the
Scheme of Arrangement sanctioned by the jurisdictional High Courts and
becoming effective from 1st April, 2006.
(f) The MRS provided that the said loan would be subordinated to
institutions/banks term loans and would be repaid after payment to all
financial institutions/banks. Accordingly, the interest on the said
loan has been fixed at 10% on annual basis and is being regularly paid
as per terms of MRS. The repayment of the loan commenced during the
financial year 2010-11 and was completed during the year. The maximum a
mount involved during the year was Rs. 44.27 Lacs and year-end balance
was nil. In view of this, we are of the opinion that the rate of
interest and other terms & conditions of the loan are not prejudicial
to the interests of the company.
(g) The company has since repaid the unsecured loan during the
financial year 2011-12.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. There was no continuing failure to correct
major weaknesses in internal controls noticed by us during the course
of our audit.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. 5 lacs in respect of any party
during the year have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of Sections 58A, 58AA or any
other relevant provisions of the Act and the Rules framed there-under,
wherever applicable with regard to the deposits accepted during the
year. In accordance with the information and explanations given to us,
there were no orders passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
"Tribunal" which have not been complied with.
7. In our opinion the company has an internal audit system which is
commensurate with the size and nature of its business.
8. Under the Companies (Cost Accounting) Rules, 2011, the company is
required to maintain cost records w.e.f. 1st April, 2011 in respect of
milk processing. We have broadly reviewed the books of accounts
maintained by the company, pursuant to the rules prescribed by the
Central Government for the maintenance of cost records under Section
209(1 )(d) of the Companies Act, 1956 read with Companies (Cost
Accounting) Rules, 2011 and are of the opinion that prima facie the
prescribed accounts and records have been maintained . We have not,
however, made a detailed examination of such accounts and records.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, in our opinion
the company is regular in depositing the undisputed statutory dues
including provident fund, investor education & protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and any other material statutory
dues as applicable with the appropriate authorities. According to the
information and explanations given to us, there were no undisputed
amounts payable in respect of the above dues which were outstanding as
at 31st March, 2012 for a period of more than six months from the date
of becoming payable.
(b) According to the records of the company examined by us, the
particulars of the dues outstanding of income tax, sale tax wealth
tax, service tax, custom duty, excise duty and cess as at 31st March,
2012 which have not been deposited on account of disputes, are as
under:
Name of the Nature of Dues Amount Forum where
Statutes (Rs. lacs) dispute is
pending
Income Tax Withdrawal of 2,35,71,688/- High Court,
Act, 1961 Investment Allahabad
allowance
and other
disallowances
10. The company has no accumulated losses as at 31st March, 2012 and
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. The company has not during the year defaulted in the re-payment of
dues to the bank. The company has no loans from financial institutions
nor has it issued any debentures.
12. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, the provisions of clause 4(xiii) of the Order are
not applicable.
14. in respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the company in its own name.
15. In our opinion, and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year. There is
no corporate guarantee which is outstanding at the end of the year.
Accordingly, clause 4(xv) of the order is not applicable.
16. The company has not obtained term loan from bank during the year
ending 31st March, 2012.
17. According to the information and explanation given to us, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment.
18. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
clause 4(xviii) of the order is not applicable.
19. The company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The company has not raised any money by way of public issue during
the year. Accordingly, clause 4(xx) of the order is not applicable.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor we
have been informed of such case by the management.
for V SAHAITRIPATHI & CO.
Chartered Accountants
Firm Regn. No. 000262N
MAHESH SAHAI
Place: Noida (Partner)
Date : 25th May, 2012 M.No. 06730
Mar 31, 2011
1. We have audited the attached Balance Sheet of Amrit Corp. Limited
as at 31st March, 201 i, the Profit and Loss Account and also Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the management of
Company. Our responsibility is to express an opinion on these financial
statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956 and on the basis of such checks as we
considered appropriate and according to the information and explanation
given to us, we set out in the Annexure, a statement on the matters
specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) We have obtained all the information and' explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet and Profit & Loss Account dealt
with by this report have been prepared in compliance with the
applicable accounting standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956.
v) On the basis of information and explanation given to us and
representations obtained from the Company and taken on record by the
Board of Directors, we report that there is no Director of the company
who, as at 31st March, 2011, is disqualified u/s 274 (1) (g) of the
Companies Act, 1956, from being appointed as Director; and
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit and
Loss Account, read together with the significant accounting policies
and Note 4 along-with other notes to accounts appearing in Schedule O
and foot-notes appearing under other schedules, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:-
a) In the case of the Balance Sheet, of the State of Affairs of the
company as at 31 st March, 2011;
b) In the case of the Profit and Loss Account, of the Profit for the
year ending March 31st 2011;
c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date
ANNEXURE TO AUDITORS' REPORT
(Referred to in paragraph (3) of our report of even date)
Annexure referred to in paragraph (3) of Auditors' Report to the
members of Amrit Corp. Limited on the financial statements for the year
ended March 31, 2011
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. In accordance with
such programme, the management has physically verified its fixed assets
during the year and no material discrepancies were noticed by them.
(c) During the year, there was no substantial disposal of fixed assets.
2. (a) According to the information and explanations given to us,
physical verification of inventories is conducted by the management at
periodic intervals. These intervals are reasonable having regard to the
size of the company and the nature of its inventories.
(b) The procedures followed by the company for physical verification of
inventories are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification as
compared to book records.
3. (a) The company has granted unsecured loans amounting to Rs. 417
lacs to two (2) companies covered in the register maintained under
Section 301 of the Companies Act, 1956. The maximum amount involved
during the year in respect of aforesaid two parties is Rs 417 Lacs
which is also the year-end balance of the loan amounts.
(b) The rate of interest and other terms & conditions of the unsecured
loan given by the company are not prima-facie prejudicial to the
interest of the company;
(c) The unsecured loans are regularly serviced as per agreed terms;
(d) There is no overdue amount in respect of the said unsecured loans;
(e) An unsecured loan of Rs. 392.73 lacs was granted to the erstwhile
Amrit Banaspati Company Ltd. (ABCL) by the then Amrit Enterprises Ltd.
(now known as 'Amrit Banaspati Co.Ltd.'), a company covered under the
register maintained u/s 301 of the Act under the Modified
Rehabilitation Scheme (MRS) of ABCL sanctioned by the Hon'ble Board of
Industrial & Financial Reconstruction (BIFR). Out of the said
unsecured loan, a sum of Rs. 88.53 lacs has devolved on the company
pursuant to the Scheme of Arrangement sanctioned by the jurisdictional
High Courts and becoming effective from 1st April, 2006.
(f) The MRS provided that the said loan would be subordinated to
institutions/banks term loans and would be repaid after payment to all
financial institutions/banks. Accordingly, the interest on the said
loan has been fixed at 10% on annual basis and is being regularly paid
as per terms of MRS. The repayment of the loan has commenced during the
financial year 2010-11 and will be completed by 31st March, 2012. The
maximum amount involved during the year and the year- end balance of
such unsecured loan is Rs 88.53 Lacs and Rs 44.27 Lacs respectively. In
view of this, we are of the opinion that the rate of interest and other
terms & conditions of the loan are not prejudicial to the interests of
the company.
(g) Interest is being regularly paid on the above loan. However, the
repayment of the loan will be completed, as mentioned in (f) above,
during the financial year 2011-12.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. There was no continuing failure to correct
major weaknesses in internal controls noticed by us during the course
of our audit.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. five lacs in respect of any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the Rules framed there- under,
wherever applicable with regard to the deposits accepted during the
year. In accordance with the information and explanations given to us,
there were no orders passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
"Tribunal" which have not been complied with.
7. In our opinion the company has an internal audit system which is
commensurate with the size and nature of its business.
8. Maintenance of cost records has not been prescribed by the Central
Govt, under clause (d) of sub section (1) of section 209 of the Act in
respect of the present manufacturing activities of the company.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, in our opinion
the company is regular in depositing the undisputed statutory dues
including provident fund, investor education & protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and any other material statutory
dues as applicable with the appropriate authorities. According to the
information and explanations given to us, there were no undisputed
amount's payable in respect of the above dues which were outstanding as
at 31st March, 2011 for a period of more than six months from the date
of becoming payable.
(b) According to the records of the company examined by us, the
particulars of the dues outstanding of income tax, sale tax, Wealth
tax, service tax, custom duty, excise duty and cess as at 31st March,
2011 which have not been deposited on account of disputes, are as
under:
Name Nature of dues Amount (Rs.) Forum where
of the dispute is
statutes pending
Income Withdrawal of Rs. 2,35,71,688/- High Court
Tax investment Allahabad
Act, 1961 Allowance
and other
disallowances
10. The company has no accumulated losses as at 31st March, 2011 and
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. The company has not during the year defaulted in the re-payment of
dues to the bank. The company has no loans from financial institutions
nor has it issued any debentures.
12. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, the provisions of clause 4(xiii) of the Order are
not applicable.
14. In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the company in its own name.
15. In our opinion, and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year. There is
no corporate guarantee which is outstanding at the end of the year.
Accordingly, clause 4(xv) of the Order is not applicable.
16. Company has not obtained term loan from bank during the year
ending 31st March, 2011.
17. According to the information and explanation given to us, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment.
18. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956! Accordingly,
clause 4(xviii) of the order is not applicable.
19. The company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
20. The company has not raised any money by way of public issue during
the year. Accordingly, clause 4(xx) of the Order is not applicable.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor we
have been informed of any such case by the management.
For V Sahai Tripathi & Co.
Chartered Accountants
Firms Registration No. 000262N
Manish Mohan
Place: Noida Partner
Date: 16,h July, 2011 M.No. 091607
Mar 31, 2010
1. We have audited the attached Balance Sheet of Amrit Corp.Limited as
at 31st March, 2010, the Profit and Loss Account and also Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Management of
Company. Our responsibility is to express an opinion on these financial
statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956 and on the basis of such checks as we
considered appropriate and according to the information and explanation
given to us, we set out in the Annexure, a statement on the matters
specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books
of account;
iv) In our opinion, the Balance Sheet and Profit & Loss Account dealt
with by this report have been prepared in compliance with the
applicable accounting standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956.
v) On the basis of information and explanation given to us and
representations obtained from the Company and taken on record by the
Board of Directors, we report that there is no Director of the Company
who, as at 31st March, 2010, is disqualified u/s 274 (1) (g) of the
Companies Act, 1956, from being appointed as Director; and
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit and
Loss Account, read together with the significant accounting policies
and other notes to accounts appearing in Schedule O and foot-notes
appearing under other schedules , give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:-
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2010;
b) In the case of the Profit and Loss Account, of the Profit for the
year ending March 31st 2010;
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
ANNEXURE TO AUDITORS REPORT
(Referred to in paragraph (3) of our report of even date)
Annexure referred to in paragraph (3) of Auditors Report to the
members of Amrit Corp. Limited on the financial statements for the year
ended March 31, 2010
1.(a) The company has maintained proper records showing full particu
-lars, including quantitative details and situation of fixed assets.
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. In accordance with
such programme, the management has physically verified its fixed assets
during the year and no material discrepancies were noticed by them.
(c) During the year, there was no substantial disposal of fixed assets.
2. (a) According to the information and explanations
given to us, physical verification of inventories is conducted by the
management at periodic intervals. These intervals are reasonable having
regard to the size of the company and the nature of its inventories.
(b) The procedures followed by the company for physical verification of
inventories are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification as
compared to book records.
3. (a) The Company has granted unsecured loan
amounting of Rs. 85 lacs to one (1) company covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the year and the year- end balances of such
advances aggregates to Rs. 91.05 lacs.
(b) The rate of interest and other terms & conditions of the unsecured
loans given by the Company are not prima-facie prejudicial to the
interest of the company;
(c) The unsecured loan is regularly serviced as per agreed terms;
(d) There is no overdue amount in respect of the said unsecured loan;
(e) An unsecured loan of Rs. 392.73 lacs was granted to the erstwhile
Amrit Banaspati Company Ltd. (ABCL) by the then Amrit Enterprises Ltd.
(now known as Amrit Banaspati Co.Ltd.), a company covered under the
register maintained u/s 301 of the Act under the Modified
Rehabilitation Scheme (MRS) of ABCL sanctioned by the Honble Board of
Industrial & Financial Reconstruction (BIFR). Out of the said unsecured
loan, a sum of Rs. 88.53 lacs has devolved on the company pursuant to
the Scheme of Arrangement sanctioned by the jurisdictional High Courts
and becoming effective from 1s" April, 2006. Beside this, the Company
has not received /obtained unsecured advances from any Company, covered
in the register maintained under section 301 of the Companies Act,
1956.
(f) The MRS provided that the said loan would be subordinated to
institutions/banks term loans and would be repaid after payment to all
financial institutions/banks. Accordingly, the interest on the said
loan has been fixed at 10% on annual basis and the repayment of the
loan will commence from the financial year 2010-11 as per terms of MRS.
In view of this, we are of the opinion that the rate of interest and
other terms & conditions of the loan are not prejudicial to the
interests of the company.
(g) Interest is being regularly paid on the above loan. However, the
loan repayment will commence, as mentioned in (f) above, from the
financial year 2010-11.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. There was no continuing failure to correct
major weaknesses in internal controls noticed by us during the course
of our audit.
5. (a) In our opinion and according to the information
and explanations given to us, the particulars of contracts or
arrangements referred to in section 301 of the Act have been entered in
the register required to be maintained under that section.
(b) In our opinion and according the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. five lacs in respect of any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the Rules framed there-under,
wherever applicable with regard to the deposits accepted during the
year. In accordance with the information and explanations given to us,
there were no orders passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
"Tribunal" which have not been complied with.
7. In our opinion the company has an internal audit system which is
commensurate with the size and nature of its business.
8. Maintenance of cost records has not been prescribed by the Central
Govt, under clause (d) of sub section (1) of section 209 of the Act in
respect of the present manufacturing activities of the company.
9. (a) According to the information and explanations
given to us and on the basis of our examination of the books of
account, in our opinion the company is regular in depositing the
undisputed statutory dues including provident fund, investor education
& protection fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and any other
material statutory dues as applicable with the appropriate authorities.
According to the information and explanations given to us, there were
no undisputed amounts payable in respect of the above dues which were
outstanding as at 31s March, 2010 for a period of more than six months
from the date of becoming payable.
(b) According to the records of the company examined by us, the
particulars of the dues outstanding of income tax, sale tax, wealth
tax, service tax, custom duty, excise duty and cess as at 31st March,
2010 which have not been deposited on account of disputes, are as
under:
Name Nature of dues Amount Forum where
of the dispute is
statutes pending
Income Withdrawal of Rs. 2,35,71,688/- High Court
Tax investment Allahabad
Act, 1961 Allowance
and other
disallowances
10. The company has no accumulated losses as at 31st March, 2010 and
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. The company has not during the year defaulted in the re-payment of
dues to the bank. The company has no loans from financial institutions
nor has it issued any debentures.
12. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, the provisions of clause 4(xiii) of the Order are
not applicable.
14. In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the Company in its own name.
15. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year. There is
no corporate guarantee which is outstanding at the end of the year.
Accordingly, clause 4(xv) of the order is not applicable.
16. Company has not obtained term loan from bank during the year
ending 31s1 March, 2010.
17. According to the information and explanation given to us, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment.
18. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
clause 4(xviii) of the order is not applicable.
19. The company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The company has not raised any money by way of public issue during
the year. Accordingly, clause 4(xx) of the order is not applicable.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of any such case by the management.
For V Sahai Tripathi & Co.
Chartered Accountants
Firms Registration No. 000262N
Manish Mohan
Place: Noida Partner
Date: 24th July, 2010 M.No. 091607